Amidst $41 Billion Acquisition, New Brief Analyzes Toyota’s Governance Crisis and What It Means for Investors
WASHINGTON, D.C. — As embattled Toyota Board Chair Akio Toyoda looks to acquire Toyota Industries Corporation (TICO), Public Citizen and Carbon Tracker Initiative today released a brief analyzing Toyota’s governance crisis and what it means for investors.
On Monday, Japanese media reported that TICO is planning to accept Board Chair Toyoda’s $41.4 billion offer for the car part, textile machinery, and forklift manufacturer. Toyoda holds less than 1% of shares in Toyota Motor Corporation (TMC), but TICO owns 9.1% of the automaker. Should Toyoda acquire TICO, the move would greatly increase his personal control of TMC, making him less accountable to investors who granted him a historically low approval vote at last year’s AGM.
“Board Chair Akio Toyoda has overseen a growing series of costly scandals that threaten the reputation of the company that his grandfather founded,” said Adam Zuckerman, senior clean vehicles campaigner with Public Citizen’s Climate Program. “His accumulation of power has worried investors, and acquiring TICO will further cement his control, making him less accountable to shareholders.”
The brief covers:
- What management’s board proposal means for Toyota’s corporate governance.
- Board Chair Toyoda’s extraordinary consolidation of power and how it has led to historic levels of investor discontent.
- How Toyota’s governance crisis threatens the company’s ability to transition to the growing market for electric vehicles, and what that means for investors.
“Board Chair Toyoda’s unchecked power threatens the automaker’s ability to transition to the growing market for electric vehicles,” said Ben Scott, head of energy demand at Carbon Tracker Initiative. “Unless investors challenge this power grab, Toyota will struggle to remain relevant in an increasingly electric world.”
On May 28, at 11:00 AM ET/4:00 PM GMT, Carbon Tracker and Public Citizen will host a webinar on the investor brief. For more information, RSVP here.